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Period Costs in Accounting: Definition & Examples

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

In what way does it matter whether a cost is a period cost or a product cost?

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1. Identify the expense that is most likely to be a period cost.

2. Which of the following is true about product cost?

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About This Quiz & Worksheet

This worksheet and quiz will assess your comprehension of period costs in accounting. You will need to know certain things like why it matters whether a cost is a period cost or a product cost and identifying a period cost.

Quiz & Worksheet Goals

This quiz and worksheet will help you to:

  • Recognize from a given few examples what is least likely to be considered a period cost
  • Determine the principle that requires a company to figure out the necessary expenses to generate the income that the company earned that period
  • Calculate costs for a given quarter

Skills Practiced

Practice the following skills:

  • Reading comprehension - ensure that you draw the most important information from the related lesson on period costs in accounting
  • Interpreting information - verify that you can read information regarding expenses that are least likely to be considered a period cost and interpret it correctly
  • Distinguishing differences - compare and contrast topics from the lesson, such as period cost or product cost

Additional Learning

Use this lesson named Period Costs in Accounting: Definition & Examples to learn more about period costs in accounting. This lesson will cover the following:

  • Understand why accounting periods matter
  • Define the matching principle
  • Recognize period costs in manufacturing
  • Be able to apply different approaches to period and product costs
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